Online Marketers Face Scrutiny Over User Privacy
Online Marketers Face Scrutiny Over User Privacy
October 22, 2009 at 08:00 PM
3 minute read
The original version of this story was published on Law.com
Online marketing programs from Facebook and Sears that potentially compromise users privacy faced scrutiny in September.
Under the terms of a $9.5 million class-action settlement, Facebook agreed to terminate Beacon, a controversial marketing venture launched in 2007. Beacon broadcasted a Facebook member's online transactions with affiliated businesses, such as movies reserved at Blockbuster or diamond rings purchased on Overstock.com, on the user's homepage and profile.
In addition to snuffing out Beacon, Facebook agreed to create a privacy foundation dedicated to privacy education and preservation on the Web. The non-profit will “fund projects and initiatives that promote the cause of online privacy, safety and security,” according to the settlement.
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